SKF (SKF) CEO Deng Lixin (Alrik Danielson): "during the first quarter, although we in many markets have experienced challenges, but the cost reduction initiatives implemented in 2015 is now beginning to have an effect. The group's operating performance for the quarter as well as 11.1% of operating margin fully illustrates this, although operating margin decreased by one percentage point over the same period. During the fourth quarter of 2015 to start the automotive market profit plan is also progressing smoothly, the automotive business to achieve a profit margin of 7.4%, an increase of two percentage points.
The sales volume of the industrial market is lower than expected, which is mainly affected by the market in China and North america. In the automotive market, sales of cars and trucks in Europe and Asia are growing strongly, while sales in North America are relatively weak.
We continue to implement various measures to focus more on the development of bearing business. As a result, we have reached an agreement to sell our wire controlled flight operations and Catton (Kaydon)'s speed control business at a total price of approximately SEK 3 billion.
In order to simplify the structure and further promote internal sales growth, improve profitability, we adjusted the sales organization structure in four areas, namely America industrial sales, Europe, Middle East and Africa industrial sales, industry sales in Asia, with the automotive and aerospace business. In addition, we will integrate our end - to - end procurement, production and logistics operations to the newly established bearing business unit, and set up a new product and business development organization.
In the second quarter of 2016, mainly affected by the Asian and North American market impetus, we expect the market, products and services on Skye demand will rise slightly."